A PYRAMID selling scheme aimed at gullible Asians in the north west has been halted by the High Court.

A PYRAMID selling scheme aimed at gullible Asians in the north west has been halted by the High Court. The Office of Fair Trading (OFT) has been granted an injunction stopping Gurdeep Singh promoting the scheme known as the VIP Club.THE OFT believe the scheme breaches several consumer protection laws. It involved luring Asians to luxury hotels and then subjecting them to high pressure sales techniques for periods of up to eight hours. Potential recruits were urged to pay a £1,695 membership fee which organisers claimed would entitle them to big discounts on travel and leisure services. They were also encouraged to recruit friends and family into the scheme being told they could earn almost £100,000 a year in commission. The court heard that Mr Singh had already been curbed from running a similar scheme called the OMI Club. It was claimed during one VIP presentation that there was a growing UK membership base of around 10,000 people, which would mean that a total of around £17 million has been paid into the scheme by new members. The OFT argued that the central purpose of both the clubs was to make money by recruiting other participants to the schemes. They argued that Mr Singh made misleading claims about the scope and value of the membership services and discounts, and the potential commission that could be earned through the recruitment of new members. OFT enforcer, Christine Wade, said: 'These clubs use slick, high pressure sales presentations to deceive the public about the benefits of becoming members. New members were encouraged to recruit family and friends based on misleading promises that they would enjoy large discounts on travel services and have the opportunity to earn large amounts of commission'.